Car Repossession

Shortystuff

Looking for some advice please, I have a car from the car finance company but im struggling to make the payments and I have just under two years left on a four year plan. I heard that after a certain amount has been paid off the plan the car wont be repossessed is that right? I still owe a lot of money but if my understanding is correct, if it gets auctioned off only a fraction of the debt would be paid off so I'm thinking it would be better to sell it myself and pay what is owed that way? Is this legal? Any info would be appreciated :-)

weeowens

A bit re what can be done when 50% has been paid: https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

I can't see how you can sell it the finance is tied to the car & a HPI check will show it up. Plus it is strictly speaking not yours to sell until the finance is cleared.

lopsyfa

You can usually sell to dealers e.g sytner, evan halshaw, we want any car, we buy any car etc who will settle the finance directly as part of the sale. You will then get what is left (less likely) or need to pay the dealer any negative equity (more likely) as part of the deal.

As mentioned above, private sale will not be possible.

molerat

If it is a hire purchase agreement the car cannot be repossessed without an order from the courts if more than 1/3 of the total agreement amount has been paid. If you have already paid 50% of the total agreement amount then you can voluntarily terminate the agreement with no further liability except for excessive damage. You can also voluntarily terminate at any time subject to paying the balance up to that 50% point. You can early terminate but that is the one where they sell the car for peanuts and you are liable for the difference and fees - not the one to choose unless you are about to go bankrupt.

bazzyb

Shortystuff wrote: »

I'm thinking it would be better to sell it myself and pay what is owed that way? Is this legal?

What type of agreement do you have? Who is the lender?

From what you have posted, it sounds like you may have a hire purchase or conditional sale agreement. In both cases, you don't currently own the car, so it is not yours to sell. You would need the owner's permission, it would be very difficult to sell privately but could be traded in.

patman99

Shotystuff, if you are struggling to make the repayments, why not look at re-financing ?.
You might find a Bank or Building Society loan at a much cheaper rate and can then used this to pay off the balance.

macman

If you are only 2 years in then you will not yet have paid off 50% of the total due.

LandyAndy

macman wrote: »

If you are only 2 years in then you will not yet have paid off 50% of the total due.

Not on a PCP but on a straight HP deal.....?

MataNui

If its PCP then you wont be remotely close to being able to VT. If its HP then that point cant be far off. I get the feeling you are referring to the rule that if you have paid 1/3 of the finance they cant just turn up and reposes.

Though that is true they can do so with an order from the courts which they will apply for and it will almost certainly be granted. Its usually just a formality and judging by what you have written would be so in this case.

You cant sell without the finance companies approval (they are usually OK with this) but have almost 0 chance of selling privately and will be looking at a shortfall that you would need to cover if you sell to WBAC etc (less than auction though possibly).